EE 311 Microeconomics Theory: Chayun Tantivasadakarn, Thammasat University

Monopoly equilibrium
20.00 P Monopoly equilibrium with single price policy
Demand: a - 2Q
18.00
a = 22.5 45
Change the value of "a" to shift the demand 16.00
and see the change in equilibrium results 14.00 14.56

12.00
13.00 12
Q* = 3.97 Q1 = 4.8 38 11
P* = 14.6 P1 = 13.0 10.00 10.02 9.69
AC* = 10.02 AC1 = 9.69 8.00
p* = 18.0 p1 = 15.7
6.00
FC = 15
4.00
Change the value of "Q1" to compare the result 2.00
0.00 4 2
0 1 2 3 4 5 6 7 8
Public good
University AVC = K/Q + bQ2
with single price policy K= 16 TVC = K + bQ3
b= 0.14 MC = 3bQ2
F= 15
Q AVC MC AFC
.56 0.001 16000 0.0 15000.0
13.00 12.8 1 16.1 0.4 15.0
11.0 1.5 11.0 0.9 10.0
.02 9.69 2 8.6 1.7 7.5
2.5 7.3 2.6 6.0
3 6.6 3.8 5.0
3.5 6.3 5.1 4.3
3.85 6.2 6.2 3.9
Q 4.5 6.4 8.5 3.3
5 6.7 10.5 3.0
2
5 6 7 8 9 10 5.5 7.1 12.7 2.7
6 7.7 15.1 2.5
6.5 8.4 17.7 2.3
7 9.1 20.6 2.1
7.5 10.0 23.6 2.0
8 11.0 26.9 1.9
8.5 12.0 30.3 1.8
9 13.1 34.0 1.7
9.5 14.3 37.9 1.6
10 15.6 42.0 1.5
 P = a -2Q Q* must satisfy MC = MR or
4.852855 TR = aQ - 2Q2 3bQ2 + 4Q -a = 0
MR = a - 4Q
AR Q* Q1
AC Q P Q P Q P
31000.0 0 22.5 0 14.56 4.75 13.00
31.1 11.25 0 3.97 14.56 4.75 9.69
21.0 3.97 6.62 4.75 0
16.1 MR 3.97 0
13.3 Q P
11.6 0 22.5 AC* AC1
10.6 5.625 0 Q P Q P
10.1 0 10.02 0 10.02
9.7 3.97 10.02 4.75 9.69
9.7 3.97 14.56 4.75 13.00
9.9
10.2
10.7
11.3
12.0
12.8
13.8
14.8
15.9
17.1